Hong Kong Limited Company Formation

Hong Kong is the significant international financial, service and shipping center in the world. It is also information highly developed international city with the most free trade port, which is the reason that numerous merchants come to here to register Hong Kong Company to develop the business and improve the company image.

Limited Company By Share

Hong Kong limited company is also known as limited liability company, LLC.
The followings are the basic requirements:
- No restriction on the amount of share capital.
- At least one founder member .
- Appoint at least 1 individual directors (aged 18 or above).
- Appoint at least 1 Hong Kong company secretary.
- Company must have a registered business address in Hong Kong.

Advantages of forming Hong Kong Company Limited

Advantages:

1. Shareholders of private debt, not involved in property and property held by Limited.
2. Co., Ltd. has a statutory document, ensure that all the shareholders (investors) of interest, so easy to set funds.
3. Sale and purchase of a limited company can avoid the Inland Revenue investigate private sources of funds trading premises.
4. Co., Ltd. was established, China, Taiwan and foreign official to come to Hong Kong Immigration Department for a business visa will be given priority.
5. Limited limited debt, operating business risk, that any shareholder will not be involved in private property and the property.
6. Co., Ltd. has legislation to protect the name, it will not have the exact same name in business dealings will not be fake, fraud, trick to severe losses.
7. A limited business, give with customers, bankers, suppliers, a good impression, that confidence that will help business development.

Tax incentives:

1. Can be fully deductible expenses such as entertainment expenses, fares and travel costs.
2. Director (owner) and the spouse of the salary can be deducted as an expense.
3. Operating a limited company, overseas sources of profit is no need to pay profits tax.
4. Using Limited to transfer property, can save large sums of profits tax, stamp duty and legal fees.
5 .Tax rate was 16.5% (net of all operating expenses, net profit), is almost lowest in the world.
6. Persons emigrated, such as the United States and Canada, the use of Company to Hong Kong and overseas to avoid paying double tax.
7. Full deduction of expenses such as buildings and motor vehicle installment of interest, and may be entitled to depreciation allowances on fixed assets.
8. Business persons to invest in China, joint venture agreement signed by Limited, overseas profits can be exempted from profits tax in Hong Kong.

Limited Company By Guarantee

Hong Kong company limited by guarantee is primary set up for non-profit organizations.
The followings are the basic requirements:
- Minimum 2 members.
- At least one founder member taking one share of the company.
- Appoint at least 2 directors (aged 18 or above).
- Appoint at least 1 local company secretary (HK resident / HK corporation).
- Company must have a registered business address in Hong Kong.

Q: What are the requirements for the incorporation of a limited company in Hong Kong?
A: Incorporating a Hong Kong limited Company requires at least one individual person holding valid passport or identity card with age 18 or above who can act as shareholder and director. Also, a Hong Kong registered address must be provided. Moreover, a Hong Kong resident or a Hong Kong limited company can act as the company secretary of the Company. (CPY can provide registered address and company secretarial services).

Q: Can China or overseas resident incorporate a Hong Kong limited company?
A: Yes. There is no restriction on the nationality of shareholder/director of a Hong Kong limited company.

Q: How long will it take for the incorporation of a Hong Kong Company?
A: Around 5 working days.

Q: Do the business nature have to be filled on the Business Registration Certificate?
A: No. The Company can fill in “Corporation” if it does not want to specify its business nature.

Q: Are there any restrictions applied to the limited company’s other business if it is outside the scope of business nature as specified in the Company’s Business Registration Certification?
A: The scope of business specified in the Business Registration Certification generally indicates the major business of the Company. If there is changes to the major scope, it is recommended to amend the business nature and it takes around 2 workingdays.

Q: How can we know whether the incorporation of a limited company is approved?
A: You can appointed us to check against the record of the Hong Kong Companies Registrar or the business registration office.

Q: When can the company’s registration document of a newly-incorporated limited company be found in Companies Registry record?
A: Such records can be found after the date of registration.

Q: Dose any fee need to be paid to Hong Kong government after the incorporation of a Hong Kong company?
A: After the incorporation of a Hong Kong company, fee for Business Certificate (HKD2,250) and Annual Return filing (HKD105) need to be paid to the Hong Kong government.

Q: How the accounting and auditing should be processed annually after the incorporation of a Hong Kong company?
A: A professional Practicing Accounting firm can be engaged for the process. CPY can assist for providing comprehensive accounting and auditing services. The company only needs to provide invoices, bank statements, expense documents, payroll records, etc., in which assist in conducting accounting and auditing work.